Schalke's sporting director has confirmed that Leroy Sané will be leaving the club this summer, with Manchester City confident of completing a £42m (€50m) deal for the Germany international.

The 20-year-old, who has been on City's radar since 2013, is understood to be keen to move to the Premier League despite his father stating on Monday that the forward could still move to Bayern Munich or Real Madrid. However, after Carlo Ancelotti admitted on Tuesday that Bayern are no longer interested in signing him, Pep Guardiola will be encouraged to hear Christian Heidel's admission that Sané is set to leave the Bundesliga side.

“Leroy has made it clear he would like to leave this summer,” he told Sky Sports. “We will consent to a transfer if Schalke’s conditions are met.”

Initially City were willing to offer only around £35m for the player who made his debut for Schalke in April 2014 and has 11 goals and seven assists in 47 Bundesliga games for the club. But with Schalke holding out for their asking price of €50m (£42m), it is believed City will submit an improved offer.

The son of the former Senegal striker Souleyman and former German rhythmic gymnast champion Regina Weber, Sané was included in Germany's Euro 2016 squad but played only 11 minutes, against France in the semi-final, which Germany lost 2-0.

Earlier on Tuesday Ancelotti denied reports that Bayern were looking to sign him. “The team is very good. All positions are well staffed and we do not need new players for this season,” he said.

“We have very good young players here. You have to give them the opportunity to show it and to gain experience.”

City have already agreed a £4m fee to sign the Argentinian goalkeeper Gerónimo Rulli, with the 24-year-old set to join Real Sociedad on a season-long loan.

(Guardian service)